Western Resources Corp · TSX:WRX
Western Resources — Investor Presentation (August 2022)
24 slides from Western Resources's investor presentation, August 2022
Slide 1: Western Resources Corporate Presentation
Western Resources Corporate Presentation August 2022
Slide 2: Forward-looking statements and cautionary notes
Forward-looking statements and cautionary notes Except for statements of historical fact, this presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and “forward-looking information” within
Slide 3: Mission statement
Mission statement To be a world-class, environmentally responsible potash producer 3
Slide 4: Western Potash Corp.: An emerging Canadian potash producer
Western Potash Corp. An emerging Canadian potash producer Fully financed Phase 1 to drive near-term production 1 Following the recent financings with Appian Capital Advisory and Vantage, Western Potash is fully financed through to Phase 1 commercial production (146ktpa) which expected to begin in H1
Slide 5: Phase 1 fully financed to production
1 Phase 1 fully financed to production Recent financing packages from mining industry specialist Appian and Vantage provided sufficient capital to complete Phase 1 and begin to study Phase 2 expansion C$85 million loan investment into Western Potash First tranche closed on 5/16 Majority sharehol
Slide 6: Value Creation Milestones
1 Value Creation Milestones Western Potash nearing Phase 1 completion and start-up May 2008 Dec 2012 Apr 2013 Apr-2007 Western Potash incorporated `` `` `` in Vancouver TSX listing Completed Feasibility Milestone Project’s EA Study on 2.8 mt is approved capacity Milestone Project Dec 2021 Oct 2019 O
Slide 7: Near-term Phase 1 Production
1 Near-term Phase 1 Production Construction at Milestone is fully financed and nearly complete. Mechanical completion expected H1 2023 with full run-rate production of 146ktpa expected by H2 2024 2018 2019 2020 2021 2022 2023 2024 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Engineering Procurement Ear
Slide 8: Construction Nearing Completion
1 Construction Nearing Completion Construction at Milestone is nearly complete, with the wellfield and processing plaint remaining as the largest outstanding construction items. Milestone has entered a construction agreement with Bird to complete construction E-House to W&P Completed To be Completed
Slide 9: Milestone Phase 1: Strong Project Fundamentals
2 Milestone Phase 1: Strong Project Fundamentals Attractive capital cost and production profile leads to a defensive cost position relative to peers and robust Phase 1 economics Cash cost curve Initial capital cost MOP annual production C$91/t cash cost, defensive relative to peers Low capex, with o
Slide 10: Attractive Market Dynamics
2 Attractive Market Dynamics Supportive long-term demand drivers and short-term supply constraints Demand World population Fundamental, long-term driver of MOP demand is food consumption which is billion driven by population and income growth Food consumption and changes in dietary preferences a
Slide 11: Strong Market Prices
2 Strong Market Prices Supply-demand imbalance has led to recent strong MOP prices, which are expected to remain favorable in the near term Historical potassium chloride prices over the last 10 years 1 FOB US MidWest typically trades at a modest premium to other benchmark prices (including 1200 FO
Slide 12: Milestone's Strategic Location
3 Milestone’s Strategic Location Attractive strategic location in Saskatchewan, one of the largest potash producing areas in the world Strategically located in Saskatchewan Port 30km southeast of Regina, easily Lajord accessible by paved and gravel roads Saskatchewan is one of the largest potash
Slide 13: ISR Potash Mining: De-risked Through Trial Mining
4 ISR Potash Mining: De-risked Through Trial Mining Western Potash successfully commissioned and operated 3 trial wells at the Milestone Project for ~18 months from October 2019 to May 2021 Simplified flow sheet Brine water Production tested method tested method Western Potash uses innovative hori
Slide 14: Key Competitive Advantages vs. Traditional Potash Mining
4 Key Competitive Advantages vs. Traditional Potash Mining Technical advantages Environmental benefits vs. traditional processes Access to multiple potash zones No tailings on surface, salt remains underground Fewer drill holes vs. conventional solution mining Less subsidence Greater caver
Slide 15: Known Geology: Targeting High Grade Zones
4 Known Geology: Targeting High Grade Zones Targeting both the Patience Lake Member and Belle Plaine Member is expected to result in access to 17m of high-grade product Thickness (m) Formation Grade (KCl %) 12m 27.4% Patience Lake Member Salt Back Salt Back Salt Back 1650 M - 1750 M 5m Belle Plaine
Slide 16: Market Leading ESG Profile
5 Market Leading ESG Profile Substantially lower carbon and environmental footprint than most other fertilizers MOP production emits substantially lower levels of greenhouse gases than most nitrogen or phosphate fertilizers Decarbonization could provide an additional tailwind to MOP demand growt
Slide 17: Plan for Expansion: Clear Path to 300ktpa+ Production
6 Plan for Expansion: Clear Path to 300ktpa+ Production Western Potash has a clear path to 300ktpa+ MOP production through a staged modular growth approach Phase 1 will prove mining approach and generate significant cash flow Phase 2 is a duplication of Phase 1, representing a near-term path t
Slide 18: Western Resources Capital Structure
Western Resources Capital Structure Recent share price performance Capital structure and share ownership In C$m, except per share amounts 0.50 1.20 Volume (M) Share Price (27-Jun-22) $0.32 52-Week High (3/07/22) 0.48 Share Price (C$/sh) 0.45 52-Week Low (1/27/22) 0.15 Total basic shares outstanding
Slide 19: Experienced Management Team
Experienced Management Team Bill Xue – Managing Director Mark Fracchia – Executive Committee Chair George Gao – CFO • 20+ years experience in project and • 40+ years of potash experience • Director of Western Resources investment management (public and • Track record of accomplishments in leadership
Slide 20: Appendix: Construction Progress to Date
Appendix: Construction Progress to Date 20
Slide 21: Crystallization Pond
| Crystallization Pond 21
Slide 22: Natural Gas Station
| Natural Gas Station NY 22
Slide 23: Pump House
| Pump House Why
Slide 24: To be completed: Processing Plant, Compaction Plant and Loadout Building
To be completed: Processing Plant, Compaction Plant location and Loadout Building Processing Plant Loadout Building Compaction Plant location location location 24
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